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Consider a production system that consists of a single station with a production rate of 1 part per minute and a process variability given by Ce=1.
a) Suppose the system is run as a push line with release rate of .9 parts per minute and Ca=1. Use the VUT equation to compute the average cycle time and the average number of parts in the system. Then calculate what happens to the average cycle time and number of parts in the system if process variability is eliminated so that Ce=0
b) Now suppose the system is run as a CONWIP line with WIP level of 1 job and has original variability levels Ce=Ca=1. What is the average throughput rate and cycle time? what happens to throughput and cycle time if we eliminate process variability of Ce=0?
What is the Economic Order Quantity technique and what are the basic assumptions the model formula follows?
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